European markets nudge higher as global risk sentiment remains volatile
The pan-European Stoxx 600 was up 0.5% by late morning, having initially gained 1% at the start of trading. Basic resources jumped 2.4% to lead gains while tech stocks slid 0.6%
The gains in Europe at the open tracked those in the Asia-Pacific region, which swung into positive territory during afternoon trade. The moves came after China’s decision to halve the quarantine period to seven days, with a further three days spent at home, which gave markets a signal that Beijing is relaxing its strict approach to eradicating Covid-19.
U.S. stock futures also climbed early on Tuesday following losses in the previous session.
Investors stateside will be looking closely at more data later today, including June consumer confidence and April home prices, to gauge the health of the economy.
Fears of a recession have increased lately as the Federal Reserve tries to combat surging inflation with aggressive rate hikes, resulting in volatile risk sentiment around the world.
In other news, the Group of Seven summit in Germany will conclude today. The meeting of leaders from the world’s seven most wealthy, industrialized nations saw the group re-affirm their support for Ukraine, saying they’ll support the country for “as long as it takes.”
In Spain on Tuesday, the latest NATO summit opens with the war in Ukraine top of the agenda. The alliance’s Secretary-General Jens Stoltenberg said Monday that NATO will greatly increase its high-readiness force, raising the number of troops from 40,000 to 300,000.
The GfK German consumer confidence survey showed Tuesday that consumer sentiment in Europe’s largest economy is projected to slide to a record low in July, with the war in Ukraine and supply chain disruptions driving food and energy prices ever higher.
In terms of individual share price movement in Europe, French carmaker Renault gained 5.3% by late morning deals after partnering with IT group Atos on data gathering in a bid to cut costs.
At the bottom of the Stoxx 600, London-based fintech firm Wise dropped more than 11% its full-year earnings report.
In other corporate news, Carmaker Stellantis plans to begin the conversion of its Termoli plant in southern Italy into a battery-producing gigafactory in 2024, Italian unions announced on Monday. Stellantis shares gained 2.5% in early trade.
